The Unexpected Weakness of the Recovery

Our title today comes from a phrase ripped out of context from a recent Wall Street Journal article. The article itself is not important, but the assumption of the phrase was just too rich for us to pass by uncommented upon.

As discussed copiously elsewhere, a propaganda campaign of gargantuan proportions has been unleashed upon the world's populace. The term perception management sums it up nicely. The basic idea is that if people are confident, they will consume. If people will consume, there will be 'work' to do. It is an effort to restore society and the economy to the defined norm of 'the way things were until about two years ago.' Whatever an individual sees or experiences to the contrary (especially unemployment and homelessness), is to be disregarded in favour of the consumerist paradigm.

Almost everything you read or hear will be attempting to reinforce the notion that the recent (and thankfully over) financial and economic crisis was just a bump in the road to ever greater prosperity.

Whether there is a vast conspiracy orchestrated by the Ministry of Truth, or whether it is merely the unconscious coordination of wishful thinking is immaterial. This informational miasma is deadly and if one wants to make it through the Depression without being too battered, one had best learn to recognise the disinformation, not get sucked in, and think straight instead.

The unhappy reality is the Depression is still on and it is going to get worse - a lot worse. Incomes are still falling. It doesn't matter that stocks are recovering or house prices in Australia are hitting new highs. In terms of purchasing power, aggregate incomes are going to be falling for a long time and everyone had better get used to that fact. Tragically, the more the truth is evaded (whether deliberately or otherwise), the worse off everyone will be.